The Observation That Consumers Are Generally More Sensitive to Price

question 112

Multiple Choice

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that

• A) most consumers cannot remember what price they paid the last time they bought a particular product.
• B) it is easier to lose customers with a price increase than to gain customers with a price decrease.
• C) most consumers would rather skip buying a product than pay a higher price.
• D) most consumers are emotionally attached to their favorite products and are unlikely to change, even if the price changes.
• E) firms gain more customers with price decreases than they lose with price increases.

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Definitions:

Heart Failure

A chronic, progressive condition in which the heart muscle is unable to pump enough blood through to meet the body's needs for blood and oxygen.

Dilated

Describes a condition of being widened or enlarged, often referring to the dilation of blood vessels or the pupils of the eyes.

Hypertrophic

Referring to excessive growth or enlargement of an organ or tissue.

Restrictive

Limiting the freedom of action or movement; imposing constraints on something.